Asda appoints David Potts as new CEO amidst turnaround efforts

Allan Leighton, the current CEO, will transition to the role of non-executive chairman, two years after his return to Asda.

Potts previously led Morrisons for eight years, from 2015 to 2023, overseeing a significant turnaround during a period of private equity ownership by Clayton, Dubilier & Rice (CD&R).

TDR Capital has been the majority owner of Asda since 2024, but the company has faced challenges, including a substantial debt load that has complicated turnaround efforts. Recent difficulties have also been attributed to a failed IT overhaul related to its separation from Walmart.

Like-for-like sales, excluding fuel, have declined for nine consecutive periods, falling 2.3% in the fiscal second quarter. Asda’s market share, according to Worldpanel by Numerator, has decreased from 14.3% in early 2021 to 11.5% currently.

Leighton’s transition to non-executive chairman was planned, following his return to Asda in 2024, more than 20 years after his initial tenure as Chief Executive.

“Over the last two years, we have stabilised the business and returned it to some growth and begun to establish Asda as ‘more than a supermarket’ through our Formula for Growth strategy,” Leighton stated. “David has an outstanding record in our industry, his experience is exactly what we now require for the next stage of our transformation and beyond and it will be great to work with him.”

Potts acknowledged the progress made but emphasized that “significant opportunities remain” to boost sales, particularly by maintaining competitive pricing. “By making improvements to the shopping trip every week, which customers can experience and feel in their pockets, we will revitalise the business and bring benefits for all our stakeholders, including our 116,296 very hard-working colleagues,” he said. He further added, “Christmas is upon us and the business has a clear focus on keeping Asda prices locked low at this important time for our customers.”